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    Monday, June 10, 2019

    Daily Advice Thread - All basic help or advice questions must be posted here. Investing

    Daily Advice Thread - All basic help or advice questions must be posted here. Investing


    Daily Advice Thread - All basic help or advice questions must be posted here.

    Posted: 09 Jun 2019 05:15 AM PDT

    If your question is "I have $10,000, what do I do?" or other "advice for my personal situation" questions. If you are going to ask how to invest you should include relevant information, such as the following:

    • How old are you?
    • Are you employed/making income? How much?
    • What are your objectives with this money? (buy a house? Retirement savings?)
    • What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?)
    • What are you current holdings? (Do you already have exposure to specific funds and sectors?)
    • Any other assets? House paid off? Cars? Expensive significant other?
    • What is your time horizon? Do you need this money next month? Next 20yrs?
    • Any big debts?
    • Any other relevant financial information will be useful to give you a proper answer.

    Please consider consulting our FAQ first - https://www.reddit.com/r/investing/wiki/faq

    Be aware that these answers are just opinions of Redditors and should be used as a starting point for your research. You should strongly consider seeing a registered financial rep before making any financial decisions!

    submitted by /u/AutoModerator
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    The intelligent investor is currently on sale at Amazon for $3.99.

    Posted: 09 Jun 2019 05:58 AM PDT

    This might be dependent on location, but I'm seeing it on sale in the US

    Edit: Kindle edition only

    submitted by /u/azzipog
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    Reminder: You can often access Morningstar (detailed reports, portfolio analysis) from home using your local library subscription.

    Posted: 09 Jun 2019 03:21 PM PDT

    Bonus: A lot of brokerages have research if you're a client too (JP Morgan, Wells Fargo, Merrill Lynch or Edge). Just FYI.

    I like Morningstar for their portfolio x-ray, so I can see what is under the hood, so to speak. I have mostly ETFs in my account, and so I was pretty surprised to learn that 10% of my account is in MSFT— leading me to buy in the future into different ETFs to dilute that massive holding a little more (USMV, RSP, etc).

    For people who own individual shares, they've got individual stock reports that seem to give fair bull and bear cases.

    TL;DR Don't pay for Motley Fool (If you liked this advice, there are 20 other pieces of advice we like more)

    Edit: Got a PM calling this an ad. I dunno, just saying you can get stuff that usually costs $15 or something a month for free.

    submitted by /u/SetzerWithFixedDice
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    Raytheon & United Technologies Merger

    Posted: 09 Jun 2019 06:50 PM PDT

    Key Points:

    - Name: Raytheon Technologies

    - Become second largest aerospace and defense company

    - Valuation of both together to be 166 Billion

    - Raytheon Stock holders to get 2.3348 shares / 1 share in the new company stock

    - The combined company will have about $74bn in sales in 2019.

    - United Technologies shareholders would own 57% of the combined company, with Raytheon shareholders owning 43%

    - United Technologies 8 Board Seats // Raytheon 7 Board seats

    LINK: https://www.cnbc.com/2019/06/08/raytheon-and-united-technologies-are-in-talks-to-merge-wsj.html

    submitted by /u/tortafeet
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    Why do you actively pick stocks when you probability favors indexing?

    Posted: 09 Jun 2019 07:50 PM PDT

    Not attacking this subreddit, I'm just curious. Passive indexing is mathematically proven to be the best way to do things. The best fund managers can't beat the market in the long run (except for a few). So what's your logic?

    submitted by /u/_zyzyx
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    Is it too late to invest in BYND?

    Posted: 09 Jun 2019 08:19 PM PDT

    Missed out on the run it had. Is it too late for me to buy shares or do you guys think it's still worthwhile?

    submitted by /u/NickFromThe6
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    What was your most unexpected gain/loss in the last year?

    Posted: 09 Jun 2019 12:35 PM PDT

    Investing in solar projects ����‍♂️

    Posted: 09 Jun 2019 06:02 PM PDT

    I'm considering investing in a solar project where roofs are rented out for 20 year periods (with 5 year options to extend after that) and solar panels are installed.

    There is a 30% federal tax credit for solar panels installed this year and Massachusetts offers additional tax credits plus incentives under a program called the SMART program which offers these incentives for 20 years after install. The numbers are fixed based on the energy produced and the panels themselves have 25 year warranties with 90% production guarantees after 20 years so the assumptions for production and smart incentives should be fairly safe.

    Here are the numbers for this particular project:

    100,000 kWh project $175,000 build cost

    +60,000 tax credit (one time) +160,000 incentive (over 20 yrs) +29,000 behind meter annual

    Annual numbers: -10,000 rent annual -2,000 management fee 1.5% -2,500 insurance -3,500 replacement / loss cost

    So you're looking at at about an $11k return (~6.3% of the original investment) year over year on top of the ~$220k return you get back over 20 years from all the incentives.

    Over the past 10 years in Massachusetts energy prices have increased 4% on average. The $29k is based on current energy prices so there is plenty of potential upside on that 6.3%.

    Even if energy somehow became free it would still be pretty safe to say you're looking at getting about ~126% back after 20 years. To put that into perspective $100k 20 years ago is worth ~$153k today so you're not keeping up with inflation, but that seems like it would be considered fairly low risk. If energy prices continue to remain constant or rise you're looking at at least a 6.3%+ ROI year over year if you consider you'll be getting back your initial costs through the incentive programs.

    Would it be crazy to invest 30% of my investment money in this project? I'm not rich, but I am comfortable. This "investment money" is outside of my retirement money and I'd be fine if I were to lose it all.

    I haven't heard of many folks investing in solar so curious if anyone else has had experience with similar clean energy investments. Beyond fusion reactors what are some other threats to energy prices? Granted if we solved the world's energy problems that wouldn't be so bad.

    submitted by /u/ManicAkrasiac
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    Daily stock market update/podcast?

    Posted: 09 Jun 2019 06:51 PM PDT

    Hello everyone, I'm wondering if there's a consensus for best daily stock market updates provided podcast style. I'm just dipping my toe in the water on financial podcasts, Jim Cramer has a good one, but it seems to come out a day late? Really looking for something that is more "live" or updated the day of. Thanks!

    submitted by /u/Sasquatchii
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    What difference is there between timing the market vs selling a position beyond intrinsic value?

    Posted: 09 Jun 2019 10:10 PM PDT

    Cheap Real Estate That Isn't Selling: What's the Catch?

    Posted: 09 Jun 2019 04:12 PM PDT

    So not to far from my area, I see tons of dead-cheap condos, apartments and so on that despite a cheap price, just aren't moving. Some of these have been listed for well over a year, and at face value, they're no-brainers. Many of them do have a $300+ HOA fee, but when you break it down, you don't spend a TON more than you already would for things like cable, garbage pickup, bulk pickup, and all of those things that typically come included.

    Even if you look at the worst numbers possible for renting it out for example, you're STILL looking at a less than 5 year ROI. So why do a lot of these places just not seem to move, despite great, reasonable prices, good square footage, and some modest HOA fees? I'll be honest, I DESPISE HOA's, but if it costs me $50-100 per month for the convenience of them handling all those services, it's something I can live with.

    I know for SURE you guys have run into these. What's the catch? Is it just like the old saying goes: "If it seems too good to be true, it probably is"?

    submitted by /u/BlackHeart357
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    With the World's two largest economies showing signs of slowing growth and Europe tangled up with Brexit, should we expect expedited growth of emerging markets? Is there any reliable data about this?

    Posted: 09 Jun 2019 10:53 PM PDT

    What available ETFs most closely track the long-short factors from Fama-French-Carhart of Size (SMB), Value (HML), Momentum (WML) in US stocks?

    Posted: 09 Jun 2019 01:09 PM PDT

    I'm having trouble finding anything that's truly follows the original methodologies and is long/short. My goal is to use them as building blocks in constructing my overall portfolio.

    submitted by /u/eknanrebb
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    Taxation on equity or balance in broker account?

    Posted: 09 Jun 2019 09:47 PM PDT

    So I tried my hand at some currency trading last year. It didn't end well. I lost almost all I put in my broker account. Towards the end of the year, I slowly started to make something, but still couldn't recover what I had lost. All that time, my equity (the actual capital in my account that I could invest) was lower than what I had deposited. So net loss.

    Earlier this year, I was gradually climbing back to original deposit amount, but there's an issue: my equity is still lower than what I have deposited in total, but my balance shows I have now more than my deposit.

    What amount gets taxed? I am guessing it's equity, because that is your true net worth. I am in losses in some positions (frankly, all of them), and only the balance is more than deposit, which does not taking into account floating profit/loss.

    submitted by /u/attofreak
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    Is there a play on the Raytheon / United Technologies merger?

    Posted: 09 Jun 2019 09:03 PM PDT

    If so, what is it? Or should I just not even get mixed up in it?

    submitted by /u/huntingboi89
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    Do corporations have a choice if they want to comply with an offical ban?

    Posted: 09 Jun 2019 06:12 AM PDT

    What's the point of the meeting if corporations have to obey the law? https://www.nytimes.com/2019/06/08/business/economy/china-huawei-trump.html

    submitted by /u/moralstorage
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    IBD - Swing Trader

    Posted: 09 Jun 2019 12:34 PM PDT

    Has anyone ever used the IBD - Swing Trader option/service? I am interested to see if it is worth it.

    submitted by /u/lucky_guy_G
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    Parsing Fed Interest Rate moves

    Posted: 09 Jun 2019 02:39 PM PDT

    I have been fascinated by Fed Interest Rate moves and their effects across financial vehicles. It's nowhere as simple as I had hoped however. There's many nuances across vehicles - bonds maybe especially. (I will edit my assumptions below as I'm corrected). Also - any other stock/bond scenarios I should add?

    STOCKS:[?]

    Fed Raises Rates: Stocks tend to go down. If nothing else, the "safe" investments just got more attractive as opposed to the always risky market.

    Fed Lowers Rates: Stocks tend to go up.

    Stock Market ETFs:[?]

    Fed Raises Rates: Same as the stocks it contains - tends to go down.

    Fed Lowers Rates: Same as the stocks it contains - tends to go up.

    --------------------------------------

    Mortgage Rates:[?]

    Fed Raises Rates: Tends to follow the fed rates, i.e. goes up

    Fed Lowers Rates: Tends to follow the fed rates, i.e. goes down

    Savings Account Rates:[?]

    Fed Raises Rates: Tends to follow the fed rates, i.e. goes up

    Fed Lowers Rates: Tends to follow the fed rates, i.e. goes down

    -------------------------------------

    Bond Yields:[?]

    Fed Raises Rates: Tends to follow the fed rates, i.e. goes up

    Fed Lowers Rates: Tends to follow the fed rates, i.e. goes down

    A Bond you already own, but plan to sell:[?]

    Fed Raises Rates: Your bond is worth less.

    Fed Lowers Rates: Your bond is worth more.

    A Bond you already own, but plan to hold to maturity:[?]

    Fed Raises Rates: No effect.

    Fed Lowers Rates: No effect.

    Long-term Bond ETFs:[?]

    Fed Raises Rates: Goes down(?)

    Fed Lowers Rates: Goes up(?)

    Short-term Bond ETFs:[?]

    Fed Raises Rates: ????

    Fed Lowers Rates: ????

    submitted by /u/mllicomponli
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    If the average US house is worth 200k, where are all the houses worth 100k or less?

    Posted: 09 Jun 2019 05:58 PM PDT

    FOMO: Waiting for a stock to go down or buy it now?

    Posted: 09 Jun 2019 08:29 AM PDT

    When I am thinking about and decide to buy a stock, I am always at a crossroads as.to if I should wait a bit for it to go down or purchase it at the price now?

    For example, I was thinking about purchasing Starbucks and on Wednesday it jumped about $3-5. Do I buy it or wait for it to go down? What do you do?

    Any and all advice appreciated! :)

    submitted by /u/jberms_
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    Do this company count as a utility stock?

    Posted: 09 Jun 2019 04:49 PM PDT

    Greenblatt recommends to exclude financial and utility stocks in his formula. Found this company that sell machienes to utility companies abroad , (oil, gold and coal companies etc..)

    Since these companies are affected of oil, gold and coal prices, they probably buy more machienes during periods their products raise in price. Which should mean that this company who sells them the machienes also is reliably on fluctuation in price?

    Do this company count as a utility stock?

    submitted by /u/Coldermar
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